IMFIN brief 11: Vaccine procurement overview

What vaccine procurement options do countries have, and what are the pros and cons of each? What are the main factors that determine the prices that countries pay for vaccines?

Key points

• Vaccine procurement is a vital function of immunization programs, with important implications for total program cost as well as reliable supply of appropriate products.
• Countries can procure vaccines directly from manufacturers or through UNICEF or the PAHO Revolving Fund (for countries in the Americas). Most Gavi countries procure vaccines through UNICEF or the Revolving Fund. In most cases, countries can obtain lower prices through UNICEF or PAHO than by procuring directly. In some cases, policy and regulatory changes may be necessary before they can use these options.
• Vaccine prices are affected by the volume of the order, the certainty of demand and of payment, and the duration of the supply contract, as well as by product characteristics and market competitiveness. Countries can influence some determinants of vaccine prices, but others are beyond their control.
• Markets for many older vaccines are fairly competitive; middle-income countries can usually obtain these vaccines at prices similar to those paid by Gavi, at least when they procure through UNICEF or PAHO. Some newer vaccines are produced by only one or two multinational suppliers; these firms typically charge higher prices to countries with higher average incomes.